MORE than 260 workers at a Greater Manchester manufacturing company face the axe under proposals to close the factory.

American giant Terex Construction revealed plans to shut its Fermec plant on Barton Dock Road, Trafford Park, by the end of the year.

Fermec makes backhoe loaders, or diggers, which are used in the construction and surface mining industries.

It is the second major jobs blow to hit Greater Manchester this week. On Tuesday, holiday giant MyTravel announced plans to axe up to 700 staff, a significant number of whom are based in Manchester and Rochdale.

Terex president Colin Robertson told Fermec employees the decision had been made in the light of the worldwide downturn in construction.

He said that, after a review of the company's overall manufacturing operations, it is planned to transfer production from Trafford Park to another site in Europe or the US. This is scheduled to begin in the spring and be completed by the end of the year. It is one of three factory closures planned by Terex worldwide.

Sales, marketing and service staff will continue to be based in Manchester, but at a new location which has yet to be determined. Union leaders have vowed to pull out all the stops to protect the 261 jobs at risk, but one official told the MEN: "Things look bleak."

Consultation

A period of consultation has begun between management and workers.

Doug Taylor, Fermec's head of human resources, told staff in a letter that the firm is considering alternative options which might prevent redundancies, such as transfers to other positions within the company in the UK. He described the news of the closure plan as "a very sad day" for Barton Dock Road.

In a statement to shareholders, Terex chairman and chief executive Ronald DeFeo said the Trafford Park closure would help the business reduce costs.

Severance payments, write-offs and other costs associated with the Fermec closure are expected to total é5.4m.

The Terex review has also led to the closure of a plant in Clones, Ireland, and the transfer of operations in Warwick to a new site in Coventry.

Dave Marsh, the divisional officer for the Amicus union, who is representing Fermec workers, said: "We thought we were going to the Promised Land, but this is another blow to manufacturing in the region."

The workforce has been trimmed over the years, but the average length of service at the factory is 15 years. "The workers deserve better," said Mr Marsh.

More than 150 jobs earmarked for the axe are in factory floor manufacturing. The rest are made up of clerical, managerial and technical posts.